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If the Intended Aim of the Price Ceiling Set at $6

Question 53

Multiple Choice

  If the intended aim of the price ceiling set at $6, as shown in the graph, was a net increase in the well-being of consumers, then positive analysis would conclude that the policy was: A)  effective because areas A + C are larger than areas B + D. B)  effective because area B is smaller than area D. C)  ineffective because area D is larger than area E. D)  ineffective because areas A + C + D are larger than areas B + E. If the intended aim of the price ceiling set at $6, as shown in the graph, was a net increase in the well-being of consumers, then positive analysis would conclude that the policy was:


A) effective because areas A + C are larger than areas B + D.
B) effective because area B is smaller than area D.
C) ineffective because area D is larger than area E.
D) ineffective because areas A + C + D are larger than areas B + E.

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